Matthew Lee Presentation - Feb. 29, 2016

1. Working on my 1st
Investment Property
Have 1 or more
Investment Properties

2. Matthew Lee, Managing Partner
matthew@volitionprop.com
(416) 937-5251
[Volition (vō-ˈli-shən): the power to make
your own choices or decisions; free will.]

3. Tonight’s Meetup is brought to you by…
416.410.9905
clientcare@calumross.com

5. 15 MINUTE NETWORKING BREAK
Find one person and share one real-
estate related WIN in the past month that
you’ve achieved!!

6. Creating Choice Thru Real Estate
Importance of
Holding For The
Long Term
4 Risk Factors in
Real Estate
Multiplier Effect
Understanding The Fundamentals

7. The Importance of
Holding For The Long-
Term

8. $0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Property Value
Mortgage Balance
Purchase: $500k
Initial investment: $100k
Mortgage:
Standard 25yr, 3%
Assume: $1M value
(double in 25 years)
$100k $385k $765k
Years
Initial investment of
$100k is now worth
$765k
Importance of Holding For The Long Term

9. Creating Choice Thru Real Estate
Importance of
Holding For The
Long Term
4 Risk Factors in
Real Estate
Multiplier Effect
Understanding The Fundamentals

10. The Multiplier Effect
From $60k
to $6M & $200k cashflow
in 20 years

11. Year 3 Year 6 Year 9 Year 12
… and then you wait.
ACQUISITION PHASE

12. Creating Choice Thru Real Estate
Importance of
Holding For The
Long Term
4 Risk Factors in
Real Estate
Multiplier Effect
Understanding The Fundamentals

13. The 4 Risk Factors in
Real Estate

14. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

15. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)

16. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)

17. Creating Choice Thru Real Estate
Importance of
Holding For The
Long Term
4 Risk Factors in
Real Estate
Multiplier Effect
Understanding The Fundamentals

18. Investment Property
Case Study
14 Symington

19. 14 Symington Ave
Toronto Ontario M6P3W1
Sold: $700,000
List: $589,000
Taxes: $2,559.58 / 2015 For: Sale % Dif: 119
SPIS: N Last Status: Sld
Plan M23 Pt Lot 10 DOM: 8
Att/Row/Twnhouse
2-Storey
Irreg:
Fronting On: W
Acreage:
14.67 x 125 Feet
Rms: 7 + 3
Bedrooms: 3 + 1
Washrms: 3
1x4xGround, 1x4x2nd, 1x4xBsmt
MLS#: W3279329 Seller: Jamaal Joseph And Bertram Evingston Joseph Occupancy: Partial
PIN#: ARN#: Contact After Exp: N
Holdover: 90
# Room Level Length (ft) Width (ft) Description
1 Living Ground 12.96 x 11.64 Laminate Window
2 Kitchen Ground 12.30 x 11.32 Ceramic Floor Ceramic Back Splash W/O To Yard
3 Dining Ground 11.32 x 8.36 Ceramic Floor Large Window
4 Br Ground 11.64 x 10.00 Hardwood Floor Window
5 Living 2nd 14.27 x 10.99 Hardwood Floor W/O To Balcony Window
6 Kitchen 2nd 11.32 x 8.36 Ceramic Floor W/O To Balcony
7 Br 2nd 11.32 x 9.02 Hardwood Floor Closet Window
8 Living Bsmt 16.24 x 10.00 Vinyl Floor Combined W/Dining
9 Kitchen Bsmt 9.02 x 6.72 Vinyl Floor
10 Br Bsmt 11.32 x 7.05 Laminate Closet Window
Toronto W02 Dovercourt-Wallace Emerson-Junction Toronto 114-14-Q
Dir/Cross St: Bloor / Symington
Kitchens: 2 + 1
Fam Rm: Y
Basement: Finished / Sep Entrance
Fireplace/Stv: N
Heat: Forced Air / Gas
A/C: None
Central Vac:
Apx Age:
Apx Sqft:
Assessment:
Laundry lev:
Exterior: Brick / Insulbrick
Drive: Lane
Garage: Detached / 2.0
Park Spaces: 1
UFFI:
Pool: None
Prop Feat: Fenced Yard, Park,
Public Transit
Zoning:
Cable TV: Hydro:
Gas: Phone:
Water: Municipal
Water Supply:
Sewer: Sewers
Waterfront:
Retirement:
Farm/Agr:
Oth Struct:
Spec Desig: Unknown
Client Remks: Ideal Investment Opportunity In A Great Location!! Minutes To Subway And Go Station!! Great Curb Appeal! Victorian Style House With
Three Self-Contained Units! High Ceilings On Main & Second Floor; Lovely Front Veranda; Second Floor Balcony; Deep Lot With Fully Fenced Yard,
Storage Shed, And Detached Garage; Separate Front Entrance To Basement. Steps To Bloor Street - Close To All Needs! Don't Miss It!
Extras: Electric Light Fixtures; 3 Fridges; 3 Stoves; Gas Burner & Equipment.
Brkage Remks: Offers To Be Reviewed Tuesday, August 11th @ 7:00Pm, At Lb Office. Please Register By 5:00Pm. Attach Schedule B & Form 801 To
Offers W/ 24 Hour Irrevocable. Deposit Cheque Must Be Certified & Herewith.
Prepared by: MATTHEW RICHARD LEE, Salesperson
RIGHT AT HOME REALTY INC., BROKERAGE
895 Don Mills Road Suite 112, Toronto, ON M3C1W3 416-937-5251
Printed on 01/21/2016 4:07:02 PM

21. 14 Symington Ave
Toronto Ontario M6P3W1
Sold: $700,000
List: $589,000
Taxes: $2,559.58 / 2015 For: Sale % Dif: 119
SPIS: N Last Status: Sld
Plan M23 Pt Lot 10 DOM: 8
Att/Row/Twnhouse
2-Storey
Irreg:
Fronting On: W
Acreage:
14.67 x 125 Feet
Rms: 7 + 3
Bedrooms: 3 + 1
Washrms: 3
1x4xGround, 1x4x2nd, 1x4xBsmt
MLS#: W3279329 Seller: Jamaal Joseph And Bertram Evingston Joseph Occupancy: Partial
PIN#: ARN#: Contact After Exp: N
Holdover: 90
# Room Level Length (ft) Width (ft) Description
1 Living Ground 12.96 x 11.64 Laminate Window
2 Kitchen Ground 12.30 x 11.32 Ceramic Floor Ceramic Back Splash W/O To Yard
3 Dining Ground 11.32 x 8.36 Ceramic Floor Large Window
4 Br Ground 11.64 x 10.00 Hardwood Floor Window
5 Living 2nd 14.27 x 10.99 Hardwood Floor W/O To Balcony Window
6 Kitchen 2nd 11.32 x 8.36 Ceramic Floor W/O To Balcony
7 Br 2nd 11.32 x 9.02 Hardwood Floor Closet Window
8 Living Bsmt 16.24 x 10.00 Vinyl Floor Combined W/Dining
9 Kitchen Bsmt 9.02 x 6.72 Vinyl Floor
10 Br Bsmt 11.32 x 7.05 Laminate Closet Window
Toronto W02 Dovercourt-Wallace Emerson-Junction Toronto 114-14-Q
Dir/Cross St: Bloor / Symington
Kitchens: 2 + 1
Fam Rm: Y
Basement: Finished / Sep Entrance
Fireplace/Stv: N
Heat: Forced Air / Gas
A/C: None
Central Vac:
Apx Age:
Apx Sqft:
Assessment:
Laundry lev:
Exterior: Brick / Insulbrick
Drive: Lane
Garage: Detached / 2.0
Park Spaces: 1
UFFI:
Pool: None
Prop Feat: Fenced Yard, Park,
Public Transit
Zoning:
Cable TV: Hydro:
Gas: Phone:
Water: Municipal
Water Supply:
Sewer: Sewers
Waterfront:
Retirement:
Farm/Agr:
Oth Struct:
Spec Desig: Unknown
Client Remks: Ideal Investment Opportunity In A Great Location!! Minutes To Subway And Go Station!! Great Curb Appeal! Victorian Style House With
Three Self-Contained Units! High Ceilings On Main & Second Floor; Lovely Front Veranda; Second Floor Balcony; Deep Lot With Fully Fenced Yard,
Storage Shed, And Detached Garage; Separate Front Entrance To Basement. Steps To Bloor Street - Close To All Needs! Don't Miss It!
Extras: Electric Light Fixtures; 3 Fridges; 3 Stoves; Gas Burner & Equipment.
Brkage Remks: Offers To Be Reviewed Tuesday, August 11th @ 7:00Pm, At Lb Office. Please Register By 5:00Pm. Attach Schedule B & Form 801 To
Offers W/ 24 Hour Irrevocable. Deposit Cheque Must Be Certified & Herewith.
Prepared by: MATTHEW RICHARD LEE, Salesperson
RIGHT AT HOME REALTY INC., BROKERAGE
895 Don Mills Road Suite 112, Toronto, ON M3C1W3 416-937-5251
Printed on 01/21/2016 4:07:02 PM

22. Exterior
Main Floor

23. Main Floor (cont)
2nd Floor

24. 2nd Floor (cont)
Bsmt

25. Bsmt (cont)
Backyard

26. Other stuff to consider:

27. Other stuff to consider:

29. 2nd Floor (After reno)

30. PRO FORMA
EXECUTIVE SUMMARY
Initlal Investment Overview Net Investment After Reno/Refinance
Property: 14 Symington Purchase Value: $750,000
# of Units: 3 Original Mortgage (80% LTV): $600,000
Purchase Value: $750,000 After Repair Value: $825,000
After Repair Value: $825,000
After Repair Value Mortgage (80%
LTV): $660,000
Length of Investment (Years): 7 Equity Takeout: $60,000
Downpayment Required: $150,000 Initial Investment Required: $226,250
Closing Costs & Reserve Fund Required: $26,250 Net Investment: $166,250
Renovation Costs: $50,000
Initial Investment Required: $226,250
DETAILED SUMMARY
Projected Income & Expense Projected Returns over 7 year timeframe
% Monthly Annual Cash Returns
Income Total Cashflow $106,790 $119,276 $132,181
Gross Rental Income $4,750$57,000 +Total Mortgage Paydown $115,314 $115,314 $115,314
+Initial Reno Equity Lift $12,500 $25,000 $37,500
Expenses +Total Y/Y Appreciation $122,666 $189,646 $260,644
Monthly Mortgage ($660000, 30yr) 2.25% $2,523$30,274 Total Profit $357,270 $449,237 $545,639
Property Taxes $250 $3,000
Insurance $150 $1,800
Hydro $150 $1,800 Annual % ROI on Net Investment
Gas $125 $1,500 Cash-On-Cash ROI % 9.18% 10.2% 11.36%
Water $75 $900 +Equity-On-Cash ROI % 9.91% 9.9% 9.91%
Property Management 0% $0 $0 +Initial Reno Equity Lift ROI % 1.07% 2.1% 3.22%
Maintenace 5% $238 $2,850 +Y/Y Appreciation ROI % 10.54% 16.3% 22.40%
Vacancy 4% $190 $2,280 Total Profit ROI % 30.7% 38.6% 46.9%
Total Hard Expenses $3,700$44,404
Profit Scenario Analysis
Cashflow $1,050$12,596
Conservativ
e Target
Optimisti
c
Contingency Fund (savings for Maintenance & Vacancy) $428 $5,130 Annual Appreciation 2.0% 3.0% 4.0%
Mortgage Paydown $1,285$14,272 Annual Rent Increase 2.0% 3.0% 4.0%
Annual Appreciation 3% $2,063$24,750 Investor Partner Total Profit: $357,270 $449,237 $545,639
Projected Gross Income $4,398$52,770 Investor Annual ROI: 30.7% 38.6% 46.9%

31. 1. Investor-focussed Real Estate Agent
2. Advisory/coaching/mentorship for Real Estate Investors
3. Joint Venture Partnerships
Matthew Lee, Managing Partner
matthew@volitionprop.com
(416) 937-5251
Services we offer:

32. If you take your financial goals seriously and are looking
for a mortgage team who understands the big picture –
we would love to serve you!
1-855-410-9905 or 416-410-9905
www.CalumRoss.com

33. 1)
• Next meetup is March 31. Put into your
calendar. (Location TBD)
2)
• Leave review on Meetup.com
• Fill out Feedback Forms.
3)
• Contact Calum if you want to talk financing.
• Contact me if you want to buy your next
investment property